Soybean Farmers Invited to Participate in Survey

by: Chris Zoller, Extension Educator, ANR, Tuscarawas County & David Marrison, Extension Educator, ANR, Coshocton County

Dr. Gary Schnitkey, University of Illinois, and Dr. Carl Zulauf, Emeritus Professor, The Ohio State University, are conducting an online survey of soybean growers in nine soybean producing states, including Ohio. The nine states represent 75% of U.S. soybean production.

The researchers intend to measure the impact of each communication channel – mass media, social media, and interpersonal meetings – on farmers’ decision-making to adopt a new digital technology. This survey is focused on soybean producers in these states: Illinois, Iowa, Minnesota, Indiana, Nebraska, Missouri, Ohio, South Dakota, and North Dakota. The results will support new research and contribute in a practical way to increase knowledge about the most efficient communication channels for the dissemination of digital agriculture technologies.

The survey takes approximately five minutes to complete, and all data will be kept confidential.  If interested, you can provide your email address to receive a copy of the final survey results.

If you are interested in participating in this survey, please click here: https://go.illinois.edu/farmdocsurvey

 

2022 Agricultural Outlook and Policy Meetings Set to Kickoff

by: Mike Estadt, OSU Extension, estadt.3@osu.edu

The Ohio State University Extension is pleased to announce the Regional Ag Outlook and Policy Meetings for 2022.  Meetings will be held around the state beginning the last of January and ending in March.

Speakers will address a myriad of topics of agriculture interest  here in Ohio as well as across the Corn Belt.  Programs will include presentations on Grain Market Outlook, Ag Law Updates, Dairy Industry 2022, Ohio’s Changing Climate, Farm Policy and Farm Bill, SB 52: Utility Solar Legislative, Farm Real Estate and Cash Rent Trends, Ag Input Price Projections and Federal Tax Updates.

New to this year’s program  is the statewide sponsorship and support of the Ohio Corn and Wheat Growers Association.

“We are proud to partner with Ohio State University  Extension educators across the state to support this year’s agronomy, outlook and grower meetings.  We value this partnership and look forward to supporting programs that bring value to our members farm businesses”, according to Brad Moffitt, Director of Membership and Market Development for the Ohio Corn and Wheat Growers Association.

The following table lists the scheduled Outlook programs with contact information to register.

 

Hosts: Union/Madison/Champaign

DATE: January 28th

Time: 8:30 a.m.

Place: Der Dutchman Restaurant, 445 S. Jefferson Ave, Plain City, Ohio  43064

Speakers:

Barry Ward, Farm Inputs, Rent and Real Estate

Ben Brown, Grain Marketing Outlook

Robert Moore, Farm Transition and Taxes

Contact  Amanda Douridas (douridas.1@osu.edu)

Registration: Go.osu.edu/PlainCityOutlook

 

Host: Defiance County

Date: January 31, 2022

Time: 6:00-9:00 p.m.

Place: Jewell Community Center, 7900 Independence Road, Defiance, OH  43512

Speakers:

Barry Ward, Farm Inputs, Rent and Real Estate

Matt Roberts, Grain Marketing Outlook

 

Contact: Bruce Clevenger (Clevenger.1@osu.edu)

Registration:  https://defiance.osu.edu/

Host: Wayne County

Date: January 13, 2022

Place: Buckeye Ag Museum, 877 West Old Lincoln Way,  Wooster, OH   44691

Time: 8:00 a.m-12:00

Speakers:

Barry Ward, Farm Inputs, Rent and Real Estate

Peggy Hall,  Ag Law Update

Aaron Wilson, Ohio’s Changing Climate

Dianne Shoemaker, Dairy Industry 2022

 

Contact: Haley Zynda (zynda.7@osu.edu)

Host: Clinton County

Date January 14, 2022

Time: 7:00 a.m. Breakfast  7:30 a.m. Program

Place: OSU Extension Office, 111 S. Nelson Ave. Wilmington, Ohio  45177

Speakers:

Barry Ward Farm Inputs, Rent and Real Estate

Peggy Hall, Ag Law Update

Aaron Wilson, Ohio’s Changing Climate

Eric Romich, SB 52 Solar Farm Legislation

Carl Zulauf,  Farm Bill 2023

Contact:  Tony Nye (Nye.1@osu.edu)

Host: Crawford County

Date: February 1, 2022

Place: Wayside Chapel Community Center, 2341 Kersetter Rd., Bucyrus, OH 44820

Time: 5:00 p.m.

Speakers:

Peggy Hall Ag Law Update

Carl Zulauf Farm Bill 2023

Matt Roberts, Grain Marketing Outlook

Aaron Wilson  Ohio’s Changing Climate

 

Contact: Jason Hartschuh (hartschuh.11@osu.edu)

Host: Pickaway County

Date  Feb 2, 2022

Place: Emmett Chapel 318 Tarlton Rd, Circleville, Ohio 43113

Time: 8:00 a.m.

Speakers:

Barry Ward Farm Inputs, Rent and Real Estate

Matt Roberts,  Grain Marketing Outlook

Carl Zulauf,  Farm Bill 2023

 

Contact: Mike Estadt (estadt.3@osu.edu)

Host: Muskingum County

Date: February 14, 2022

Place: Muskingum County Convention Center, 205 N. 5th St. Zanesville, Ohio 43701

Time: 9:00 a.m.

Speakers:

Barry Ward  Farm Inputs, Rent and Real Estate

Peggy Hall,  Ag Law Update

Matt Roberts,  Grain Marketing Outlook

Carl Zulauf,  Farm Bill 2023

Contact: Clifton Martin (martin.2242@osu.edu)

Host:  Darke County

Date: March 25, 2022

Place: Romers Catering,118 E Main St, Greenville, OH 45331     

Time  10:00-2:00 p.m.

Speakers:

Barry Ward,  Farm Inputs, Rent and Real Estate

Peggy Hall Ag Law Update

Aaron Wilson  Ohio’s Changing Climate

Contact Taylor Dill (Dill.138@osu.edu)

 

 

Ladies on the Land Workshops Offered Across Ohio

Ohio has 13.6 million acres of farmland that is increasingly owned, managed, and leased by women of all ages. To help women better navigate farmland leasing issues, Ohio State University Extension developed a “Ladies on the Land” workshop in cooperation with USDA’s North Central Risk Management Education Center. The workshop provides practical information to help women address their questions and concerns about leasing farmland in Ohio.

2022 Ladies on the Land Flyer

Each Ladies on the Land workshop addresses the educational needs of women involved in all stages and aspects of Ohio agriculture – from non-operating landowners to producers and tenant farmers. Workshops focus on enhancing communication skills, delving into the specifics of Ohio land leasing laws, and the nuts and bolts of an effective lease agreement. Participants will also leave with a better understanding of management strategies to minimize their risk in leasing farmland in Ohio.

Through hands-on activities and demonstrations, Ladies on the Land workshops aim to increase confidence, improve communication skills, and provide helpful resources for all women involved in agriculture. Specific workshop topics cover:

  • Assessing the risk-reward continuum for tenants and landowners
  • Farmland leasing best practices
  • Enhancing communication skills
  • Developing equitable rental rates
  • Answers to questions and concerns

Ladies on the Land workshops will take place from January through March 2022 in various locations throughout Ohio, including January 26 in Medina County, February 15 in Ross County, February 24 in Morrow County, and March 3 in Putnam County.

There is a $25 registration fee that includes snacks, a boxed lunch, and all materials. Registration begins at 8:30 am. The program begins at 9:00 am and concludes at 3:30 pm. To reserve your seat for any of the Ladies on the Land workshops, please call 419-523-6294 or register at http://go.osu.edu/ladiesontheland.  Registration fees may be paid via credit/debit card or check.

Factors Behind Production Gains in Brazil

by: Guil Signorini, Department of Horticulture and Crop Science | The Ohio State University

Last month this column featured an article about souring fertilizer and chemical costs faced by Brazilian farmers as the 2020/2021 season unfolds. The latest developments show that the Southern farmers have not changed planting and growing plans due to these challenges. On the contrary, projections from CONAB (Federal Agency of Agricultural Supply) indicate that grain growers intensified production. Soybean production is expected to reach 4.9 billion bushels, a 7% increase over the last season, and the highest production mark ever registered. Projections for the corn crop are just as significant. Estimations indicate that the country will produce 4.6 billion bushels, a vital recovery from last season’s drop in production due to drought.

Nevertheless, what catches our curiosity is how Brazilian farmers have managed to improve production projections considering the pandemic and the severe pressure from high ag input costs. What can we learn from our fellow farmers? What marketing factors are favoring production expansion?

One important factor is the likely price stability for both commodities until May 2022, when most growers should be close to the season wrap-up. Ipea (Institute for Applied Economic Research) reported in December that international prices are expected to remain stable or experience marginal increments. Future prices from CME Chicago corroborate with Ipea. Soybean contracts for May 2022 were settled at $12.73 per bushel, and corn contracts were traded at $5.86 per bushel on December 6, slightly higher than current prices in Chicago.

Two other factors deserve attention: the adoption of sustainable agricultural practices and the use of innovative financial tools to fund the production. On the agricultural practices front, no-tillage, use of beneficial rhizobacteria, and crop-livestock-forest integration systems are examples of practices listed in a recent report from MAPA (Brazil’s Ministry of Agriculture) to explain the findings reported in the USDA International Agricultural Productivity document. In the latter document, USDA estimates a Total Factor Productivity (TFP) index. The TFP index reflects the overall rate of technical and efficiency change in production over time. Computations return positive estimates for the index when total agricultural output grows faster than the sum of inputs utilized. Brazil’s index figures above the world’s average with a 1.7% annual growth rate in the last years of analysis (2015-2019). The world’s average is 1.2%, and the U.S. index holds a yearly growth rate of 0.04%. Brazil has been in many ways a reference in sustainability practices applied to corn and soybean crops. As a result, farmers experience yield gains, reduce reliance on conventional inputs or practices, and help sustain a healthy growth rate of national production.

The third overall factor sustaining production growth in Brazil is the development of innovative financial instruments to borrow operating capital. These instruments were devised out of farmers’ necessity instead of preference. The operating costs of a representative corn and soybean farm in Brazil are considerably higher than those of a Midwest farm. Our estimations suggest that one acre of soybeans grown in Brazil requires five times the operating costs that an average Midwest farm requires. Similarly, the operations of one acre of corn in Brazil cost twice as much as the operations of one acre of corn in a typical Ohio farm. Because the cost of establishing a soybean or corn crop is budget constraining for most growers in Brazil, several financial instruments were devised and continue to evolve to ease the constraint. Eventual challenges associated with spikes in ag-input prices can be managed using the available financial tools. (As long as grain prices at harvest lead to a positive bottom-line result).

We want to call attention to two private financing instruments commonly used in Brazil: the CPR (Rural Product Exchange Title) and the CRA (Certificate of agribusiness receivables). Together these instruments raised $5.1 billion in 2019. Farmers may also access working capital at reduced interest rates through season plans (Plano Safra, in Portuguese) put together by the federal government every season. In 2019 the government made approximately $43 billion available to farmers in need of capital to cover establishment costs, including seed, fertilizer, and chemicals.

A quick discussion about the two private funding instruments is in order. The CPR refers to an agreement between a farmer and a financial institution. The agreement is frequently signed a couple of months before planting, and the expected crop is used as the guarantee. Farmers may choose to use the crop to liquidate the title at the end of the season. The CRA is a type of income security issued by a non-financial institution, often a multinational ag-input firm or a commodity trader. The security is then transacted with a financial institution that agrees on anticipating capital to the firm or trader. In possession of working capital, the ag-input firm or trader signs agreements with growers in exchange for the money.

This latter instrument has gained popularity in Brazil for two key reasons. First, farmers show preferences for borrowing capital from trading partners instead of banks. Second, ag-input firms and traders are in a position that allows scale gains before approaching a financial institution for the working capital. In that sense, they tend to obtain the capital at reduced interest rates, which are passed to growers with little to no additional charges. Ag input firms and traders are primarily interested in selling inputs or originating grain rather than profit via financial transactions.

The point to be made is that Brazilian grain growers count on two resilience factors. The first derives from technical decisions at the farm field. Sustainable practices have paid off as they tend to reduce reliance on conventional ag inputs, favor nutrient cycling, and enhance tolerance to abiotic stresses such as droughts. The second factor refers to financial tools available to help farmers cope with expensive operating costs. From the farm financial management perspective, eventual price increases in fertilizers and chemicals can be managed with appropriate financial instruments, especially when the commodities show signs of stable prices at harvest. Other than that, Brazilian farmers must work their fields and hope for the projections to hold and for abiotic stresses to be easy on the crops. The bottom line shall be safe then.

 

(This article was previously published in the Ohio’s Country Journal on December 13, 2021).

 

If African Swine Fever Comes to Your Neighborhood, Are You Prepared?

Learn the signs and what to do if African Swine Fever or another foreign animal disease affects your herd. This program addresses the steps you should take, the state and federal response and biosecurity planning. Presentations provided by Ohio Department of Agriculture, USDA and The Ohio State University.

WHO: Veterinarians with swine clientele & small swine producers (Even if you have just a pig or two this information is for you! But, producers of any size are welcome to attend.)

WHERE AND WHEN: All Presentations 6-7:30 p.m.

  • January 12th Clinton County Extension Office; 111 S Nelson Ave, Suite 2, Wilmington
  • February 2nd Champaign County Extension Office; 1512 S US Highway 68, Suite B100, Urbana
  • February 16th Putnam County Extension Office; 1206 E 2nd St, Ottawa
  • January 19th OSU – ATI; 1328 Dover Rd, Wooster

Click here to access he flyer about this program

There is no cost to attend and no RSVP required. Light refreshments provided by Ohio Pork Council. Any questions? Contact Dr. Kristy Shaw at 614.728.6253 or kristy.shaw@agri.ohio.gov

 

 

Ag Policy and Outlook Conference Recordings Available

by: Holly Davis, Communications and Outreach Manager
CFAES | Department of Agricultural, Environmental, and Development Economics

Each year the Department of Agricultural, Environmental, and Development Economics (AEDE) in the College of Food, Agricultural, and Environmental Sciences (CFAES) hosts the premier forum for Ohio’s agricultural and food industries. Our experts cover topics and issues important to producers, agribusinesses and elected officials. Recordings of these sessions are now available on AEDE’s YouTube channel. The full playlist of all six sessions can be accessed by clicking below. Topics covered include:

  • Consumers, Shopping, and Local Food: What’s Next?
  • Now Hiring: An Ohio Food and Agricultural Labor Update
  • U.S. Trade Policy and Prospects for Agricultural Trade
  • Agricultural Commodity Markets: Trends and Prospects
  • Agricultural Finance Recovery
  • A Conversation About the Next U.S. Farm Bill

Sessions in bold indicate AEDE faculty presenters who are available to do a winter/spring updated presentation upon request (capacity varies by presenter). Please visit our conference website to access presenter contact information if you would like to request an updated virtual session for your population, and to access PDFs of the presentations.

 

November Feed Outlook Released by USDA

by: Chris Zoller, Extension Educator, ANR – Tuscarawas County

The United States Department of Agriculture Economic Research Service (USDA-ERS) released its Feed Outlook on November 12, 2021.  The full report is available here: https://www.ers.usda.gov/webdocs/outlooks/102543/fds-21k.pdf?v=9667.4.  This USDA-ERS report examines production, use, and prices of corn, wheat, oats, barley, and sorghum.  Much of the analysis is based on the November 2021 World Agricultural Supply and Demand Estimate (WASDE) report (https://www.usda.gov/oce/commodity/wasde/wasde1121.pdf).  This article will highlight the domestic production, utilization, and pricing of corn.

Yield

For the 2020/2021 marketing year, corn production has increased to a projected record yield of 177 bushels per acre.  The current record, 176.6 bushels per acre, was set in the 2017/2018 marketing year.  The chart below represents U.S. corn production from 1998 to the 2021 forecast.

 

This record corn production forecast comes despite expected lower yields in Minnesota, North Dakota, and South Dakota.  These reduced yields are offset by higher expected production in Illinois, Indiana, Ohio, and Michigan.  The figure below represents corn production from 1998 to present for 12 States.

Utilization

Corn uses are classified into four areas: ethanol, exports, feed, and other.  The November Feed Outlook forecasts growth in each of these areas, as displayed in the figure below.

 

Anticipated increases in corn use have reduced the corn ending stocks.  The season average corn price is $5.45 per bushel for the 2021/2022 marketing year.  Compared to the 2020/2021 marketing year average price of $4.52 per bushel, this represents a significant increase.

Summary

Corn yields, prices, and utilization are expected to be strong.  With increasing input costs, farmers are encouraged to consult their Extension Educator and these OSU Extension resources when developing a cropping plan for the 2022 growing season:

 

Reference

USDA ERS Feed Outlook, November 2021, https://www.ers.usda.gov/webdocs/outlooks/102543/fds-21k.pdf?v=9667.4

 

 

USDA Economic Research Service Corn & Soybean Projections to 2030

by: Chris Zoller, Extension Educator, ANR in Tuscarawas County

The United States Department of Agriculture Economic Research Service has projected agricultural production through 2030.  This comprehensive document reviews production, income, and trade projections for major agricultural commodities.  The complete document is available here: https://www.ers.usda.gov/webdocs/outlooks/100526/oce-2021-1.pdf?v=4987.6.  This article provides a highlighted summary of corn and soybean price, use, and export projections to 2030.

Assumptions

The projections detailed in this report are based on several assumptions, including those related to the most recent Farm Bill, trade policy, international policies, biofuels, and macroeconomic implications, among others.  Many factors can change these projections, but the report does provide some insight to future agricultural pricing and production.

U.S. Corn and Soybean Projections

Increasing needs globally for diversified diets and protein sources will continue to impact grain production income, as will trade tensions and the value of the U.S. dollar.  Returns over variable costs are projected to be on an upward trend for most crops.  Corn and soybean production is expected to end the period at record levels.  The figure below is a projection of prices to 2030 for corn, soybeans, and wheat.

While corn acres are projected to decline, it is expected that increasing yields will make up for the acreage decline.  Corn for ethanol is expected to increase at a slower rate than during the most recent period.  The USDA ERS projection to 2030 forecasts corn for food and beverage uses to keep pace with population growth.  Export markets appear to remain favorable to U.S. corn producers.  The figure below displays U.S. corn use for food and beverage, ethanol, and exports.

South America will continue to be a strong competitor for U.S. soybean producers with respect to soybean meal and soybean oil.  The projection to 2030 expects increasing use of soybean oil for biodiesel production, assuming it meets requirements of the Renewable Fuels Standard.  Soybean meal and oil for domestic use is seen to remain steady over the projection period.  The figure below represents expectations for soybean domestic use and export through 2030.

Summary

This article provided a very brief overview of the USDA ERS projections for corn and soybean pricing, use, and exports to 2030.  Several assumptions are used to make these projections, and many factors can change in the next decade to alter these projections.  However, this information can be useful in long-term planning and business analysis.

The following OSU Extension resources may be of interest and use as you conduct financial planning:

Please contact your local OSU Extension Agriculture and Natural Resources Educator for additional information and assistance.

FARM OFFICE LIVE FALL and WINTER EDITION!

by: Barry Ward, David Marrison, Peggy Hall, Dianne Shoemaker, Julie Strawser – Ohio State University Extension

“Farm Office Live” returns virtually this fall and winter as an opportunity for you to get the latest outlook and updates on ag law, farm management, ag economics, farm business analysis and other related issues from faculty and educators with the College of Food, Agriculture and Environmental Sciences at The Ohio State University.

Each Farm Office Live will include presentations on select ag law and farm management topics from our experts. Participants will have an opportunity to ask questions and interact with presenters via webinar features. Viewers can attend “Farm Office Live” online each month on Wednesday evening or Friday morning, or can catch a recording of each program. The full slate of offerings for this fall and winter:

November 17th 7:00 – 8:30pm

November 19th 10am – 11:30am

December 15th 7:00 – 8:30pm

December 17th 10:00 – 11:30am

January 19th 7:00 – 8:30 pm

January 21st 10:00 – 11:30 am

February 16th 7:00 – 8:30 pm

February 18th 10:00 – 11:30 am

March 16th 7:00 – 8:30 pm

March 18th 10:00 – 11:30 am

April 20th 7:00 – 8:30 pm

Topics to be addressed over the next few months include:

Legal trends for 2021

Legislative updates

Tax Issues That May Impact Farm Businesses

Crop Input Costs and Profit Margins

Cropland Values and Cash Rents

Interest Rates

Farm business management and analysis updates

Farm succession & estate planning updates

Who’s on the Farm Office Team?  Our team features OSU experts ready to help you manage your farm office:

Peggy Kirk Hall — agricultural law

Dianne Shoemaker — farm business analysis and dairy production

David Marrison — farm management

Barry Ward — agricultural economics and tax

Julie Strawser – marketing, webinar management and support, administrative support

Register at:  https://go.osu.edu/farmofficelive

We look forward to you joining us this fall and winter!

Upcoming Farm Profitability Series Announcement

by: Chris Bruynis, OSU Extension Educator

It does not take long to figure out that planting 2022’s crop is going to be significantly more expensive that this past year. Between supply disruption, industry labor issues, and a host of other issues, inputs for the next crop are going to cost more. So this means farmers will need to make the best decision possible to protect profitability in 2022. You are invited to join a free virtual webinar series looking at critical decisions concerning where to invest technology dollars, fertility management, and best management practices for crops. Join us to learn from top industry, private sector, and university experts on issues important to farm profitability in 2022 and beyond.

Each webinar will open at 11:30 AM for participants to log in and check audio settings. The program will start at 11:45 AM and last until 1:00 PM. The agenda for the series is as follows:

January 5:           Farming Technology: Where to Make the Next Investment

– John Fulton, OSU, Professor and Extension Specialist

January 19:        Should Fertilizer Applications be Reduced?

– Steve Culman, OSU, Associate Professor, State Specialist Soil Fertility

February 2:        ARC/PLC and Crop Insurance: Decision for 2022

– Chris Bruynis, OSU Associate Professor & Extension Educator

February 16:      Good Crop Production Practices: Research Findings

– Laura Lindsey, OSU, Associate Professor, Soybean Specialist

– Osler Ortez, OSU, Assistant Professor, Corn Specialist

March 2:             The Rational and Economics of Irrigation in Ohio

– Aaron Wilson, OSU Atmospheric Scientist

– Mark Ackerman, President, George F Ackerman Co.

March 16:           Grain Marketing Outlook: Show me the Money

– Matt Roberts, Founder of The Kernmantle Group

Feel free to join one, or six of these session by registering at https://go.osu.edu/2020farmprofit to get your name included. Additional Zoom invitations will be sent prior to each meeting to remind participants. Please RSVP by the end of December 2021. Question may be directed to bruynis.1@osu.edu or by calling OSU Extension Ross County at 740-702-3200.